TOKYO (AP) — Asian shares were mostly higher on Tuesday, following Japan's benchmark Nikkei 225 index, which soared to new highs after a significant election victory for the nation's first female prime minister, Sanae Takaichi. The Nikkei 225 climbed 2.6% to close at 57,821.58, building on a 3.9% increase from the previous day that was fueled by the landslide victory of Takaichi’s political party in a parliamentary election. This political shift has raised hopes that Takaichi will implement reforms aimed at stimulating the economy and enhancing the stock market’s performance.
In Australia, the S&P/ASX 200 saw a rise of 0.3%, reaching 8,893.60, while South Korea's Kospi added 0.6% to settle at 5,327.80. The Hang Seng index in Hong Kong surged 1.0% to 27,300.00, and China's Shanghai Composite index increased by 0.2%, closing at 4,130.20.
Meanwhile, on Wall Street, the U.S. stock market was coming off its best day since May. The S&P 500 approached its all-time high from two weeks ago, gaining 0.5% to reach 6,964.82. The Dow Jones Industrial Average saw a modest increase of less than 0.1%, closing at 50,135.87, and the Nasdaq composite added 0.9%, totaling 23,238.67. Despite these gains, concerns linger regarding stock valuations and whether they have become excessively high following the record-setting run.
One significant apprehension is whether the extensive financial investments made by major tech companies in artificial intelligence will yield sufficient profits to justify the outlay. On the day prior, shares of chip manufacturers demonstrated strong performance, with Nvidia jumping 2.4% and Broadcom rising 3.3%, contributing to the overall market uptick.
In the bond market, Treasury yields remained relatively steady as traders awaited key economic reports scheduled for later in the week. The U.S. government is set to release its monthly employment report on Wednesday, followed by the consumer-level inflation figures on Friday. These reports could influence expectations regarding the Federal Reserve's interest rate policies. Currently, the Fed has paused its interest rate cuts, although a downturn in the job market could lead to expedited cuts, while elevated inflation might necessitate a prolonged hold.
The bond market reflected these dynamics, with the yield on the 10-year Treasury easing slightly to 4.20% from 4.22% late on Friday. In commodities, gold prices rose by 2%, settling at $5,079.40 per ounce. Gold prices have experienced sharp fluctuations, having almost doubled over the past year and swinging between $4,500 and $5,600. Silver also saw significant movement, spiking 6.9% on Monday.
In the cryptocurrency market, Bitcoin hovered just below $71,000, after having surpassed this mark during the weekend. The cryptocurrency had experienced a decline to nearly $60,000 last week, representing more than a 50% drop from its record high set in October. In early trading on Tuesday, benchmark crude recorded a slight drop, with U.S. crude decreasing by four cents to $64.32 a barrel, while Brent crude, the international benchmark, fell by two cents to $69.02 a barrel.
The U.S. dollar saw minor fluctuations, edging down to 155.75 Japanese yen from 155.83 yen, and the euro was priced at $1.1909, down from $1.1916.
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